Federalism, policy change, and social security in Belgium: Explaining the decentralization of family allowances in the Sixth State Reform

Abstract

The debate on social policy change is not only about the evolving nature of social benefits but also about change in their territorial organization. This territorial issue is central in Belgium. In 2011, the Sixth State Reform featured the decentralization of family allowances, a component of social security. This article explains why such decentralization occurred in Belgium despite the fact that Francophone parties, which effectively have veto power over constitutional reform, had long insisted that no portion of social security would ever be transferred to the constituent units. We argue that increasing political pressure generated by the surge of the Nieuw-Vlaamse Alliantie (N-VA) in the context of the government formation crises altered how Francophone parties assessed both the national unity situation and their own political interests. The article also discusses the policy and political implications of the decentralization of family allowances in Belgium.